2022-05-19-莱坊-UK_Residential_Investment_–_Yield_Guide_Q1_2022_2页_131kb

Residential Investment Yield Guide Summary for Q1 2022

This report provides indicative yields for residential investment sectors in the first quarter of 2022. The sectors covered are Student Property, Co-Living, Build-to-Rent (including London & South East, Regional Cities, and Greater London), Single Family Housing, and Seniors Housing. Yields are presented for prime properties with Net Initial Yield (NIY) bases, assuming a rack-rented property and are based on income-focused transactions of institutional-grade assets.

Sentiment across all sectors is reported as positive throughout the period. Key yield details include:

• STUDENT PROPERTY: Prime London - Direct Let maintained 3.75%-4.00%; Prime Regional - Direct Let decreased slightly to 5.00%-5.25%. Long-term leases (25 years) with RPI adjustments are specified.
• CO-LIVING: Prime London yields ranged 4.00%-4.25% to 3.75-4.00%; Prime Regional ranged 5.00% to 4.50-4.75%.
• BUILD-TO-RENT (London & South East): Zone 1 Prime held 3.00%-3.25%; Zone 2 and 3-4 showed stability or slight decreases to 3.25%-3.75%. Greater London prime maintained 3.50%-3.75%; South East prime held 4.00%. Regional cities tiers 1 and 2 (tier 2 with 4.50%-5.00%) showed positive sentiment.
• SINGLE FAMILY HOUSING: South East and Regional yields were stable around 3.75%-4.25%.
• SENIORS HOUSING: Focus on South East with yields starting from 5.00%-5.25%.

Investment volumes peaked in 2021, with:

• Student property: £1.4bn to £3.0bn.
• Build-to-rent: High volumes from £2.5bn in 2020 to £3bn in 2022.
• Seniors housing: Lower volumes showing a downward trend from nearly £1bn in 2021 to £0.5bn.

The report is for general indicative use only, prepared on 30 January 2022, and does not constitute expert advice or apply to specific properties.